1996 (2) TMI 89

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....l for the Department and Sri B. L. Srivastava, learned counsel for the assessee. The facts of the case are that the assessee is a firm which sold papers to a mill on commission basis on behalf of Shri L. D. Laddha. In connection with these transactions, the respondent-firm paid Rs. 2,34,317 to Shri L. D. Laddha on various dates. According to the details of the payments, as contained in the books o....

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....before the Tribunal that the payments, in no case, exceeded Rs. 2,500 at any one point of time and that, therefore, its case was not hit by section 40A(3). Hence, this reference. The Tribunal has decided the case in favour of the assessee only on the ground that if the Income-tax Officer wanted to correct the entries, he should have examined the assessee-firm as well as Shri L. D. Laddha regardin....